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CA Final · Financial Reporting · Ind AS 12 Income Taxes

Ind AS 12 as notified in India differs from IAS 12 in its presentation requirements. Which of the following describes the difference relating to the statement in which tax expense is presented?

Ind AS 12 deleted the requirements on presenting tax expense in a separate income statement. This is a consequence of Ind AS 1 removing the two-statement option, so profit or loss and other comprehensive income components are presented together in the statement of profit and loss.

  1. ARequirements for presenting tax expense in a separate income statement were deleted because Ind AS 1 requires profit or loss and other comprehensive income components to be presented in one statement of profit and lossCorrect
  2. BInd AS 12 requires tax expense to be presented only in a separate income statement, never within the statement of profit and loss
  3. CInd AS 12 requires tax expense to be shown only in the notes and not on the face of any statement
  4. DInd AS 12 retains the option of a two-statement approach for presenting tax expense

Explanation

Per the comparison with IAS 12, the requirements about presenting tax expense in a separate income statement were deleted. This follows the removal of the two-statement option in Ind AS 1, which requires components of profit or loss and OCI to be shown in the statement of profit and loss. The option retaining two statements is therefore wrong.

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